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High-tech Entrepreneurship and Total Factor Productivity: the Case of Innovation-Driven Economies

High-tech Entrepreneurship and Total Factor Productivity: the Case of Innovation-Driven Economies This article aims to shed light on the relationship between total factor productivity (TFP) growth and high-tech entrepreneurship in a group of innovation-driven economies during the period 2007–2014. In this regard, we outline a panel data analysis method. For measuring high-tech entrepreneurship, we consider proportion of early-stage entrepreneurs and established business owners in high or medium technology sectors provided by the Global Entrepreneurship Monitor. Based on the Global Competitiveness Report 2014–2015, business sophistication and innovation are considered control variables. Our findings reveal a non-linear high-tech entrepreneurship-TFP growth relationship in an innovation-driven context after the inclusion of control variables. A disappointing finding is that business sophistication and innovation exert negative impacts on TFP growth. Policy makers should put in place a whole new policy approach accordingly. Policies facilitating innovative start-ups are an important tool to enhance knowledge diffusion and stimulate productivity growth. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of the Knowledge Economy Springer Journals

High-tech Entrepreneurship and Total Factor Productivity: the Case of Innovation-Driven Economies

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References (110)

Publisher
Springer Journals
Copyright
Copyright © Springer Science+Business Media, LLC, part of Springer Nature 2020
ISSN
1868-7865
eISSN
1868-7873
DOI
10.1007/s13132-020-00659-9
Publisher site
See Article on Publisher Site

Abstract

This article aims to shed light on the relationship between total factor productivity (TFP) growth and high-tech entrepreneurship in a group of innovation-driven economies during the period 2007–2014. In this regard, we outline a panel data analysis method. For measuring high-tech entrepreneurship, we consider proportion of early-stage entrepreneurs and established business owners in high or medium technology sectors provided by the Global Entrepreneurship Monitor. Based on the Global Competitiveness Report 2014–2015, business sophistication and innovation are considered control variables. Our findings reveal a non-linear high-tech entrepreneurship-TFP growth relationship in an innovation-driven context after the inclusion of control variables. A disappointing finding is that business sophistication and innovation exert negative impacts on TFP growth. Policy makers should put in place a whole new policy approach accordingly. Policies facilitating innovative start-ups are an important tool to enhance knowledge diffusion and stimulate productivity growth.

Journal

Journal of the Knowledge EconomySpringer Journals

Published: Sep 1, 2021

Keywords: Entrepreneurship; High-tech; Panel data; Productivity

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